LS Electric is taking definitive steps towards the localization of the next-generation power grid technology, ‘Voltage-Sourced HVDC’ (High Voltage Direct Current). On July 24th, the company announced that it signed a Memorandum of Understanding (MOU) with global energy solutions company GE Vernova on July 23rd at the Grand Hyatt Seoul in Yongsan-gu, Seoul. The purpose of this MOU is to localize the converter equipment for voltage-sourced HVDC.
The MOU ceremony saw the participation of approximately 50 key figures from both parties, including LS Electric Chairman Ja-Kyun Koo, President Jong-wu Kim, GE Vernova’s Electrification Division Director Philippe Piron, Grid Integration Systems Director Johan Vindel, and Alexei Kraal, Economic Counselor from the U.S. Embassy in Korea.
Through the agreement, both companies committed to jointly promoting the localization of the 'converter valve', a core component for gigawatt (GW) level voltage-sourced HVDC. By combining LS Electric's exclusive HVDC production infrastructure in Korea with GE Vernova's technological expertise, the partnership aims to achieve full localization of converter equipment.
LS Electric has already localized HVDC transformers (CTR) and plans to expand localization to the converter valves, ultimately achieving autonomy in core HVDC technologies. HVDC technology efficiently transmits power by converting alternating current (AC) to direct current (DC) for long-distance transmission, then back to AC for supply. It offers lower transmission losses and advantages for subsea and underground transmission. Specifically, voltage-sourced HVDC improves grid stability and enables real-time bidirectional power control, making it essential for expanding renewable energy.
This technology is crucial for the government's 'West Coast Energy Highway' initiative, facilitating stable transmission of offshore wind and solar energy generated in the Honam region to the metropolitan area.
LS Electric is accelerating localization efforts to reduce dependency on foreign technology and mitigate risks associated with exchange rate fluctuations and global geopolitical tensions. The company aims to gain GW-level project leadership by developing capabilities to deliver entire converter equipment systems on a turn-key basis.
The MOU outlines not only the localization of converter valves but also phases to secure domestic voltage-sourced HVDC business contracts and expand into global markets collaboratively.
LS Electric has been pursuing the localization of key HVDC components since establishing Korea's first dedicated HVDC plant in Busan with a KRW 110 billion investment in 2011. Last year, the company marked its first MOU with GE Vernova for global HVDC business cooperation and secured orders for 64 transformers in the first and second phases of the East Coast-metropolitan HVDC project.
Ja-Kyun Koo, Chairman of LS Electric, stated, “Following the establishment of Korea’s first HVDC plant, we now embark on the localization of key components for voltage-sourced HVDC. Through collaboration with GE Vernova, we aim to achieve full self-reliance in next-generation power grid technologies."
Philippe Piron, GE Vernova’s Electrification Division Director, noted, “This partnership with LS Electric is a significant turning point based on mutual trust, leading the development of voltage-sourced HVDC technology. We are committed to supporting Korea’s energy transition and smart grid development with our manufacturing expertise and technical support.”
